Answers (3)

I would work with a lawyer. Two features that are common: a non-refundable down payment (of several percent) and the only amount that is credited towards purchase is the amount above fair market rent (also non-refundable). The renters may not be so enthusiastic with those terms, but other terms may be ripping you off.

Hi Landlord1968,Technically you do not need an agent for a Rent to Own Agreement. Strategically however, is another story.

You could write a very simple RTO agreement stating your terms, their terms, add the legal requirements and stipulations, get the acknowledgments you need and you're done. Be sure you consider as many possible downsides as you can and write in your available contingency plans.

Strategically this may not make sense. You already have liability as a landlord. Why increase your exposure when it is unnecessary? Utilizing a broker to do the write up and negotiation will allow you to spread your risk among more players.

As licensed professionals, brokers are bound by certain fiduciary responsibilities and accompanying liabilities that if you perform on your own, you absorb completely.

Be aware that holding property in an LLC (as many do) will not always protect you if you act outside the scope of your expertise and qualifications. Tread carefully, your future is at stake. Good luck!